In the new issue of Regulation, economist Pierre Lemieux argues that the recent oil price decline is at least partly the result of increased supply from the extraction of shale oil. The increased supply allows the economy to produce more goods, which benefits some people, if not all of them. Thus, contrary to some commentary in the press, cheaper oil prices cannot harm the economy as a whole.

Two long wars, chronic deficits, the financial crisis, the costly drug war, the growth of executive power under Presidents Bush and Obama, and the revelations about NSA abuses, have given rise to a growing libertarian movement in our country – with a greater focus on individual liberty and less government power. David Boaz’s newly released The Libertarian Mind is a comprehensive guide to the history, philosophy, and growth of the libertarian movement, with incisive analyses of today’s most pressing issues and policies.

Drug Related Gun Battle in Acapulco Leaves 18 Dead

Suspected drug traffickers trapped in a safe house fought a furious gun battle with Mexican soldiers early Sunday in the beach resort city of Acapulco. As terrified residents and tourists cowered in their rooms, the firefight raged for two hours, leaving 16 gunmen dead. Two soldiers were also killed and several bystanders were wounded.

The gunmen, suspected members of one of Mexico’s major cartels, threw as many as 50 grenades at the advancing soldiers, and both sides fired thousands of rounds from assault rifles.

Mexican officials have long argued that while there has been serious turmoil in some cities along the border with the United States, the main tourist resort areas are safe. Even before the Acapulco incident, though, events over the past year had cast some doubt on such complacent assurances. A few months ago, a retired general who had just been appointed to direct anti-drug efforts in Cancun was assassinated, and there have been other troubling developments. The main Gulf coast and Pacific resorts are certainly safer than the war zones in such places as Tijuana, Nuevo Laredo, and Ciudad Juarez, but American tourists should not be lulled into thinking that those areas are immune from the drug violence.

President Felipe Calderon’s decision nearly three years ago to launch a military offensive against the drug cartels has backfired. The strategy has not stemmed the flow of illegal drugs into the United States, it has merely caused a spike in the violence and made Mexico a more turbulent, dangerous place for everyone.